Goldman: Oil Prices To Hit $82.50 By The Summer

Increased geopolitical tensions in the Middle East, plunging Venezuelan production, and now the U.S. withdrawal from the Iran nuclear deal could push Brent Crude prices to $82.50 a barrel by summer, Goldman Sachs said Wednesday. On Tuesday, U.S. President Donald Trump said that the United States would withdraw from “an unacceptable Iran deal”, re-imposing sanctions on Tehran that “target critical sectors of Iran’s economy, such as its energy, petrochemical, and financial sectors.” The U.S. will target Iran’s crude oil sales, and sanctions that were lifted under the deal will be re-imposed following a 180-day wind-down period, the U.S. Treasury said . The return of the sanctions could initially reduce by 500,000 bpd Iran’s current crude oil production of 3.8 million bpd, Goldman Sachs said in a note today, as carried by Reuters. A loss of 500,000 bpd of Iranian crude oil supply would push up oil prices by around […]